Chapter 11 Flashcards
What sector of the economy does industry take place in?
Secondary sector
What must a country do in order to industrialize effectively?
A country must identify its assets and obstacles and figure out what can be produced for the greatest profit at the lowest possible cost
Define industry
The production of a product or service within an economy
Define site and situation
Site is where something is located, and situation is where something is located relative to other things
Why has industry diffused from MDCs to LDCs?
Cheap land, cheap labor, and countries shift from secondary to tertiary sector jobs as their economies develop
What fraction of its manufacturing jobs did the US lose during the first decade of the 21st century
1/3
Define outsourcing
When a company contracts with foreign companies to produce a product (the company doesn’t move overseas, they just hire another company to produce the product)
What is NAFTA?
The North American Free Trade Agreement of 1994 – eliminated trade barriers, but also created conditions for the movement of industry and people (including illegal immigration and drugs)
What are maquiladoras and what caused them?
NAFTA has been blamed for the rise in foreign owned factories in Mexico called maquiladoras
Why has the population density in Mexico shifted from the central part of the country near Mexico City to the border towns of the north?
The Mexican government first required to maquiladoras to be along the border because of overcrowding in Mexico City. Plus, there are plenty of jobs on the US border and quick access to trade with the US. There’s also cheaper land and living costs in the north
What’s an unintended consequence of the Mexican population moving north?
An increase in illegal immigration to the US
What are the main factors when determining industrial location?
Land and transportation (costs)
Where is copper mostly mined in the US?
In Arizona
Why are copper factories located as close to the mines as possible?
Because copper is a conductor and isn’t cheap. They can’t move mines but they can move factories.
Is copper a bulk gaining or bulk reducing industry?
Bulk reducing
The addition of what usually makes something bulk gaining?
The added weight of something such as water
What are some examples of a bulk reducing industry?
Copper, iron, steel, baseball bats, paper, and ethanol
What are some examples of a bulk gaining industry?
Different foods, water bottles/ bottled drinks and foods, and cars
If your industry is bulk reducing then where do you want the factory to be located?
Close to the raw materials/ input
What are the 4 factors the location of industry is based on?
Transportation costs (bulk gaining or reducing), availability of labor, agglomeration (the clustering of other related industries which provides support), and the location relative the market
What parts of the “land” site factor are always changing?
The price of land, the proximity to markets, and transportation
What parts of the “labor” site factor are always changing?
The availability of low cost labor
What parts of the “capital” site factor are always changing?
Money, technology, equipment, factories, etc
Why have factories moved from urban areas to rural sites?
Because land is cheaper and more abundant and changes in access to transportation networks
What has been a competitor with Mexico’s maquiladoras?
China’s “special economic zones”
What are SEZs?
Special areas that the government exempts from taxes and government regulations, quotas, labor laws, etc
What are the 4 primary methods of shipping and what do they depend on?
Trucks, trains, ships, and air. Which one a manufacturer chooses depends on what and where it’s going
What are break of bulk points?
Locations where large amounts of cargo can be easily broken up and shipped in different modes (from ships to trains and trucks, etc)
Where is reliance on low cost labor most commonly found?
In developing countries in South and East Asia
What’s an example of reliance on low cost labor?
Labor intensive textiles are now commonly produced in heavily populated countries (Ex: India and Indonesia)
What is comparative advantage? Give an example.
When a country can produce 1 thing at a lower cost, even though they have the capability to produce many things. Ex: China could produce cars and toys, but it’s cheaper to focus its resources on toys. So they let otheres make cars and then trade with them.
What is deindustrialization??
Changes in labor structure and land use lead to de-industrialization
What are the 4 reasons that industry is shifting south and west?
Deindustrialization in the north, access to resources (ex: cheaper land in the south), more “right to work” states in the south so no labor unions, and internal migration (more people are moving south and west)
Where is industry shifting from and to where?
Industry and people are moving from the Rust Belt to the Sun Belt
What is just in time delivery?
When a shipment of component parts and materials to a factory takes place at the moment that they are needed.
Where do suppliers locate nowadays due to just in time delivery and why does it work?
Suppliers locate as close to manufacturers as possible. This saves money on shipping, loading, unloading, and especially warehousing
What are the potential disruptions during just in time delivery?
Labor shutdowns (strikes) can disrupt the flow of deliveries, traffic and security at international borders, and environmental hazards (hurricanes, snow, ice, earthquakes, etc)
What are footloose industries? Give examples
Industries where location doesn’t matter- not tied to a certain location due to available resources or specific transportation needs. Ex: Microchip manufacturing, software development, social media sites, etc
What is agglomeration and what does it lead to?
The clustering of related industries to increase productivity and cut costs. It leads to “growth poles” (areas where specific industries cluster and then boost the local economy (housing, job opportunities, services, etc)
What are growth poles?
Areas where specific industries cluster and then boost the local economy (housing, job opportunities, services, etc)
Where is Silicon Valley and why is it located where it is?
It’s in Northern California because of the good colleges such as Stanford that attracts smart people to move there and ultimately start their companies or bring their existing one there
What is the research triangle in North Carolina?
It’s an area with many top universities such as Duke and UNC which attracts highly skilled and educated labor. This creates a high quality of life and attracts related industries
What attracts people to Music City (Nashville)?
Vanderbilt and other top universities, the music industry, health care industry, and auto manufacturing.
